From yesterday’s low at around $187B, the market has recovered to around $201B in the evaluation.
Consequently, we can see the majority of cryptos in green, but the biggest gainer among the top 100 coins is Nano who increased by over 50% in less than 24 hours from yesterday’s low at $1.6 to $2.44 where it’s currently trading.
Looking at the daily chart we can see that the price of Nano was inside of the triangle correcting since the coin hit the market. As you can see the August 14th low corresponded with the ending of the triangle pattern, and from there the price broke out off it. As you can see this last upward momentum has been stopped out at the inside pitchfork lower median line which serves as resistance. I have labeled two horizontal support levels one being the lowest price has been at $0.88 and the other is the prior range support which now serves as resistance.
Zooming into the 4-hour chart I have labeled this correction as a five wave WXYXZ and it looks like the August 14th low was the final wave Z. Two mentioned horizontal levels correspond with the Fibonacci retracement levels 0 and 0.236.
Relative Strength Index is at 66.65% which is not still overbought but as you can see the steepness of the line usually follows the steep line to the downside after.
This could mean that this is just a quick recovery before more downside, which is more likely considering the market sentiment, but this chart can also be interpreted as a start of an uptrend. If the current upward move shows strong impulsive momentum I would expect the price of Nano to get up to $6.12 before another minor correction.
Even if this happens I would still be expecting more downside for the price of Nano because that 5 waves up move could only be a wave W of a correction in the opposite direction. If that happens I would expect the price of Nano to retest the second wave X of the first corrective structure at around $10, potentially creating a cup and handle formation.
I doubt that is going to happen because looking at the hourly chart we can see that the price is currently stuck inside off of the descending channel and as you can see the price was rejected by its resistance line once again which is why I have labeled this as an intermediate WXYXZ with one more low inside of the channel before the price gets out of it.
That low could be on the next minor horizontal support level at $1.36 or potentially to the lowest point of the prior low at $0.88. Ultimately I believe that the correction in the opposite direction is in play but I think that the current descending channel structure is the wave X and one more upswing should be expected before a lower low scenario.
The first target for the Y wave I see is on the horizontal resistance at $2.91, target 2 is at the W wave hight at $3.96 and target 3 for the completion of Y wave should be at $4.41. Anything beyond that would make me reconsider my Elliott Wave count.